Gartner Market Guide for Supplier Risk Management Solutions
Authors: William McNeill, Sr Director Analyst at Gartner & Koray Kose, Sr Director Analyst at Gartner
"The market for supplier risk management solutions has seen a resurgence due to the massive impact of COVID-19. This research will help supply chain technology leaders supporting sourcing and procurement identify prospective solutions to monitor, manage and mitigate supplier risk." We believe that one key reason for the report is that the supplier risk software market is highly fragmented, leaving companies with almost too many options.
Risk management can be viewed differently by different people. In our opinion, this analysis suggests that an evaluation based on the following factors illustrates the potential need for multiple solutions to address a company’s risk management program.
- Event Monitoring: Supply chain disruptions caused by weather, geopolitical events and other hazards.
- Financial: "Identifies the financial viability of a supplier, and whether the supplier is currently experiencing, or likely to experience, any financial issues that will impair its ability to fulfill obligations toward an organization and its own supply chain."
- Corporate social responsibility (CSR): "Combines supplier compliance with legal, ethical, safety and social compliance (e.g., supplier diversity) and sustainability ratings. This may also be called environmental, social and corporate governance (ESG)."
- Performance Management: "Creates and manages supplier performance dashboards that can track many metrics, including risk to provide a holistic supplier view. Examples include quality metrics, logistics metrics (e.g., on-time delivery performance), payment metrics and more alongside key risk indicators such as vesting balance, spend concentration and financial strength."
- Compliance: "Refers to regulatory and compliance mandates that are often managed by a category of software called third-party risk management."
- Capacity: Visibility into potential capacity issues, usually by tracking current order status, performance against order history, supplier responses and acknowledgments.
The report also includes information on how companies are currently mitigating disruptive events as in the chart below. For instant access to the full report, please fill out the form.
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